MicroStrategy Completes Raising $3 Billion to Buy More Bitcoin

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MicroStrategy has completed the issuance of $3 billion in 0% convertible bonds due in December 2029, which are expected to be used to buy more Bitcoin. The bonds carry a 55% premium, with an exercise price of about $672.

The announcement came as the company's stock fell more than 25% on November 21, according to Google Finance .

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MicroStrategy's 0% senior convertible notes pay no periodic interest, sell at a discount and have priority over common stock in the event of bankruptcy.

If the entire $3 billion is used, the company could buy about 30,600 Bitcoins at a price of $98,285 per Bitcoin.

MicroStrategy raised $3 billion through a 0% convertible note, following an earlier announcement of a capital increase from $1.75 billion to $2.6 billion. This is part of the “ 21/21 ” plan to raise $42 billion over three years to accumulate Bitcoin.

The company now holds 331,200 Bitcoins, worth more than $32.7 billion, leading public companies. MicroStrategy (MSTR) shares fell more than 25% from a high of $536.70 to $397.28 at the closing bell on November 21.

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MicroStrategy (MSTR) shares fell after Citron Research warned of “overheating ” and disconnection from Bitcoin fundamentals. Still, MSTR is up 480% year-to-date in 2024, becoming the second-most traded stock in the U.S. on Nov. 20.

The company contributed to a record $70 billion in trading volume from Bitcoin-related products. Bitcoin is currently priced at $98,423, down 1.5% from the $100,000 mark.

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